Corporate income tax: flow-through entities; treatment of certain limited liability companies as a corporation; provide for. Amends secs. 12, 607, 699, 701, 805 & 845 of 1967 PA 281 (MCL 206.12 et seq.) & adds sec. 339.

This bill updates Michigan's corporate income tax laws to clarify how certain business structures, such as limited liability companies, are treated for tax purposes. Specifically, it establishes that a limited liability company converted from another business type is taxed as a corporation unless it is disregarded for federal tax filing purposes. The legislation also refines definitions for flow-through entities and adjusts how gross income is calculated by excluding specific items like certain fees and capital asset sales. These changes apply to shareholders, partners, and members of these entities, ensuring consistency between state and federal tax treatment for converted business structures.